As of October 2026, Square Payroll costs $35 a month plus $6 per person paid for full-service payroll, which covers employees and contractors with tax filings. Contractor-only payroll is $6 per person paid per month, with no base fee. The main extra charge is $3 per person a year if you opt in to mailed paper W-2s or 1099s.
Square Payroll is the payroll add-on from the point-of-sale company, built for small businesses in the US that already use Square for payments or want simple payroll with tax filing. Its pricing is short and clear, which makes it easy to cost out. The detail that matters most is what counts as a person paid.
Square Payroll plans and prices
| Plan | Price as of October 2026 | Who it's for |
|---|---|---|
| Full-service payroll | $35 a month plus $6 per person paid per month | Businesses with W-2 employees, with or without contractors |
| Contractor-only payroll | $6 per person paid per month | Businesses that only pay 1099 contractors |
| Mailed paper W-2s and 1099s | $3 per employee or contractor a year, opt in | Teams who want paper copies by post |
The pricing is per person paid, so you pay for the people you run through payroll in a given month. Square's page also lists free seasonal inactivity, which suits businesses that close for part of the year.
What full-service payroll includes
- Unlimited pay runs each month, plus auto payroll and off-cycle payments.
- No commitment and no long-term contract.
- Multistate payroll and multiple pay rates.
- Payment by check, direct deposit or Cash App, with instant pay for team members who use Cash App.
- Two-day and four-day direct deposit: you can apply for two-day payroll, which cuts processing to two business days instead of four.
- Automatic payroll tax calculations, with federal tax payments and filings done for you.
- State tax payments and filings, including state income tax and state unemployment tax (SUTA) where it applies.
- Digital delivery of W-2s and 1099s, new-hire reporting and federal and state compliance alerts.
- Benefit deductions and company contributions, and split direct deposits to multiple bank accounts.
Time tracking and team tools
If you already use Square for your shop or restaurant, the joined-up tools are the main reason to choose it. Square Payroll imports your team's hours from Square POS or the Square Team App, tracks and imports direct tips, calculates overtime and reports labor costs, including wages and tips. Team members can self-onboard, and you can manage the team and run payroll from the Square Team App.
The extras that add to the bill
Square's page lists a few things outside the two headline prices. Mailed paper W-2s and 1099s cost $3 per employee or contractor a year if you opt in. Workers' compensation and paid amendment services are listed as separate offerings, so check their pricing before you rely on them. Next-day direct deposit using your Square balance is also mentioned as an option.
What Square Payroll costs at different team sizes
Because the price is a flat base plus a per-person fee, the cost rises in a straight line as you add people. Here's how the structure works, using Square's own figures:
| Your setup | What you pay each month |
|---|---|
| Full-service, employees only | The $35 base plus $6 for each employee paid that month |
| Full-service, employees and contractors | The $35 base plus $6 for every person paid, employee or contractor |
| Contractors only | $6 for each contractor paid that month, no base fee |
| Seasonal business, closed months | Square lists free seasonal inactivity |
Compared with plans that charge per employee on the books, per person paid means you're not paying for people who didn't work that month.
Speed of payment
Standard direct deposit takes four business days to process. Square says you can apply for two-day payroll, which cuts that to two business days, and team members who choose Cash App get paid instantly. If your staff are used to fast pay, that's a practical point in Square's favour, and it costs nothing extra on the pricing page.
Who Square Payroll suits
It's a strong fit for restaurants, cafes, shops and salons already on Square POS, because hours and tips flow straight into payroll. It also suits small teams that want tax filing handled without picking a tier. It's less suited to businesses that need deep HR features, since Square's page focuses on payroll, time and team tools rather than a full HR suite.
If you're comparing, our roundups of Gusto alternatives and the best payroll software for restaurants cover other options, and a separate Square fees guide explains the card processing side.
How to estimate your Square Payroll cost
- Decide whether you need full-service (any employees) or contractor-only.
- Count how many people you expect to pay in a typical month.
- Multiply that number by the $6 per-person fee and add the $35 base for full-service.
- Add $3 per person a year only if you want mailed paper tax forms.
- Check the price of any workers' compensation or amendment service you plan to use.
The verdict
Square Payroll's pricing is simple and fair: one base fee, one per-person fee and almost no hidden tiers. For a small team already using Square, the automatic import of hours and tips is worth more than a few dollars' difference with a rival. Count people paid, not people on the books, and you'll know your bill before you sign up.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
Comparing payroll platforms? Our ADP alternatives roundup looks at ADP and others.
Frequently asked questions
How much does Square Payroll cost?
As of October 2026, full-service Square Payroll is $35 a month plus $6 per person paid per month. Contractor-only payroll is $6 per person paid per month.
Does Square Payroll file payroll taxes?
Yes. Square calculates, withholds and files federal payroll taxes, and files state taxes including state income tax and state unemployment tax where applicable.
Is there a contract with Square Payroll?
No. Square's pricing page says there's no commitment and no long-term contract required.
Does Square Payroll charge for W-2s?
Digital delivery of W-2s and 1099s is included. If you opt in to mailed paper copies, Square charges $3 per employee or contractor a year.
Can I pay staff through Cash App with Square Payroll?
Yes. You can pay by check, direct deposit or Cash App, and team members who use Cash App get their paycheck instantly.
Does Square Payroll handle more than one state?
Yes. Square lists multistate payroll and multiple tax jurisdiction support, and it remits tax payments and filings in each state or tax jurisdiction where you run payroll.
Can Square Payroll import hours and tips?
Yes. It imports hours from Square POS or the Square Team App, and it tracks and imports direct tips.
